Wednesday, November 11, 2009

Back to Naked Puts

I'm going back to my naked puts. Certainly not making me independently wealthy, but they just keep making me money.

Did:

RIMM Dec. 50 - 1.45 credit
WMT Dec .50 - .70 credit

Looking at AMGN Dec 52.50 - 1.05 credit (haven't done this yet)

Actually bought a stock position - take a look at onxx, has the potential for nice move, if anybody is still just going long stock.
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6 comments:

  1. JustinNovember 12, 2009 at 9:21 PM

    Hey mike,
    I'm watching the indices and it looks like they are ready to level off or at least slow their upward trajectory, so direction neutral strategies are always a good play.
    WMT seems to love the 50 strike, it's been playing around there for a long time now. I was doing 45/55 condors on there back when the VIX was higher.
    RIMM seems like a weak hand to me lately, I'd be hesitant to get too close with the strike. IV has definitely ramped up lately so you should get a juicy premium even with farther OTM strikes. The DEC 50 delta is .10, and the 80 call is .12. This may be a decent SS candidate.

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  2. JustinNovember 12, 2009 at 9:23 PM

    Keep in mind, they report 12/17 so you may have a problem with IV build working against you.

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  3. MikeNovember 15, 2009 at 5:55 PM

    Hi Justin,

    Yeah rimm seems a little weak, but 50 looks to pretty safe. Who knows. I'm going to ride it our for awhile. I'm thinking i'll hold wmt till expiratation.. seems unlikely to drop below 50. I could have gotten out the day after earnings puts dropped to around .22 so i would have made a few $$. I ended up putting on the amgn 52.50 put on thursday. We'll see what happens.

    I know what you're saying about market leveling off, I'm still waiting for that pullback it just seems to want to keep running up.

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  4. MikeNovember 17, 2009 at 7:52 PM

    What do you think about amzn December 115 get 1.20 delta at .13?

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  5. JustinNovember 17, 2009 at 8:46 PM

    AMZN was downgraded today so that may have an effect on the price, then again it may not since the market seems to be overlooking a lot right now.
    I'm split on this one, it's at all new highs and has a lot of "air" beneath it but on the other hand it's a strong stock that's got a large share of retail right now. For a short-term play it looks good, if I was thinking of buy-and-hold I would probably wait for a pullback.

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  6. MikeNovember 17, 2009 at 10:47 PM

    I'm just looking at selling the 115 dec puts and holding till expiration, seems very unlikely to drop below 115 but who knows?

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